Search results

Sorry if I wasn't clear. I meant if you combined a long VX front month position with short VXX. You'd basically be trading a gradated spread that starts out very neutral moving to full spread near expiration.

Volatility and the Alchemy of Risk (pdf)

VXX is based off the futures. This is basically being long/short the front/back month spread, except it varies based on VXX's allocation at the time (anywhere from nearly 100% front to 100% back). Current: CBOE VIX Future NOV 17 89.42% CBOE VIX Future DEC 17 10.58%

What do you mean "it has always been this volatile?" The long term average VIX is not 9 dude. It's not 15 either. Let me address one of your earlier statements: Yes, things have changed. The amount of retail and other money currently pumped into shorting the front end of the VIX curve every...

What does any of this have to do with anything? I'm simply addressing your implied point that everything is wonderful and that's why indexes continue to go up and vol should be sold.

You're either short VIX, new here, or both if you actually believe the above. We've been over this a million times. Everything is about central bank accommodation, corporate financial engineering, and tails (heh) wagging the market dog. You don't have to be reading ZH every day but you should...

I wouldn't be surprised to see the VIX breach even lower, early longs capitulate, maybe some talk of "low vol is the new normal" etc. Then everyone piles on even more short to get blown out on the real move (whenever that is).

Wohl is now spending his time top replying to every single trump tweet. He has plenty of it given that the NFA basically banned his ass from any futures trading.

RVs seem like the thing to me that millennials definitely won't be buying when they get older (if we don't nuke everything first). It's gotta be a tapering business.

I had no idea this was actually a stock. Anyway, speaking of which:

Or you could simply trade up and towards earnings but close before the actual event. Why gamble?

Bob, what's the point of the half-in, half-out thing anyway? Why not just charge the standard fee on opening the position? What's the incentive for the FCM to utilize half-in/half-out?

Best one by far:

Aren't those also closed to foreign investors just like China?

It's not that they want a piece of the pie. It's that they want it and the entire concept gone. This has nothing to do with cashing in and everything to do with regulating these types of things out of existence.

So it's not a bubble because everything else is a bubble, Jack?

The baseline for the "risk free rate" is typically a "risk free bond" like a treasury. Just because one can find situations where they can eek out a very small percentage return doesn't mean it's any better than simply owning short term treasuries. That's why people are pointing out that the...

https://en.wikipedia.org/wiki/Oil-storage_trade https://www.mercatusenergy.com/blog/bid/106289/A-Layman-s-Explanation-of-the-Famous-Crude-Oil-Storage-Trade They were doing this as recently as 2015.

Aside from the logistical/contractual/clearing risks, the oil storage trade could be seen as "risk free".